Every homeowner wants to sell for the highest possible price. How you go about it can make all the difference. The right list price will get your home sold in the shortest amount of time. Conversely the wrong price will leave your home sitting on the market just waiting for a price reduction. Before you and your real estate agent agree on a list price there are a few important steps you need to take. Without a full understanding of your goals for the transaction, the current market condition and the available data you may miss the mark and list at the wrong number. Here are three important factors in determining the best list price for your property.
Know your bottom line.As you consider where to list your home you first need to know your bottom line. What price you list for is not the number you are going to walk away with at the closing. There are several other factors involved starting with any current mortgage balance. Call your current lender and ask for a payoff through the projected closing date. Next talk to your real estate agent about tax responsibilities and closing costs. You should also discuss with your attorney if there are any hidden costs that you need to be aware of. Once you have all of these numbers in place you will have a better idea of what you bottom line will be based on the list price. You need to know what number you will net at the closing as you decide where you want to list.
Know the market. Real estate markets are constantly changing. A sale on your street a few months ago may not have as big of an impact as you think. Before you settle on a list price you need to know where your market is headed. If you are in a buyers’ market you should be able to command a higher asking price. If the market is not as strong a higher priced listing will likely have a difficult time finding a buyer. Don’t be fooled by a listing you saw a few weeks ago. Buyers will use actual sales to determine what they are going to offer. Before you list you need to know the market
Look at the data.A good real estate agent understands the local market. They will be an important resource in formulating where to list your home. Look at the comparable sales and listings your real estate agent provides. These numbers are the best indication to use for your property. As the owner you often have an over inflated view of your home and its worth. Your real estate agent will help focus on the data and keep your number in check. The importance of listing at the right price cannot be overstated. You need to rely on comparable listings, sales and current market conditions to help guide you. Listen to your real estate agent and trust the data they provide.
It is not enough to throw a number against the wall and see if it sticks. You need to be able to think like a buyer and use this information to your advantage. A better list price often makes for a smoother transaction.